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Stablecoins shift from interest payouts to usage rewards under new GENIUS Act rules.

Market News
25 May 2026
Crypto Briefing
View Source
Neutral
pluang ai news

The GENIUS Act, effective since July 2025, bans stablecoin issuers from paying direct interest to holders, pushing the industry to find alternative reward methods. Circle CEO Jeremy Allaire advocates for usage-based incentives like transaction rewards and loyalty programs instead of interest payments. Despite these restrictions, USDC's circulation grew to $77 billion by Q1 2026, showing strong demand. The law allows issuers to earn returns on reserve assets while prohibiting passing interest to users, shaping a new stablecoin reward landscape that investors should watch closely.

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